A bank's assets are
A)things owned by or owed to the bank.
B)things the bank owes to someone else.
C)a measure of the bank's net worth.
D)always greater than the bank's liabilities.

Question

Quizplus · Accepted Answer

A bank's assets are things owned by or owed to the bank, such as loans, securities, and cash. Liabilities, on the other hand, are amounts the bank owes to others, such as deposits and loans from other banks. The difference between the value of a bank's assets and liabilities is its net worth or equity. Therefore, options B, C, and D are incorrect.

A Bank's Assets Are